After many reinstalls of both XP and NVE3 I have finally found the root of the crashing-on-importing-anything problem.
Themes.
Standard XP theme: No problem
Standard Classic Theme: No Problem
My XP theme (OpusOS): Hang/Crash on import.
NeroVision2 does not exhibit this problem. I am using a replacement uxtheme.dll from the neowin guys.
So, is this a known problem? I have seen many unanswered threads with the same symptoms, but never a hint that it was the theme causing it.
I hope someone can shed a little light on this as i don't want to have to disable themese everytime i wish to author a DVD. Thanks.